Question

2: Which of the following current year events would explain
fall in on entity's operating profit margin compared to the
previous year?

A- a decision to value inventory on the average cost basis
from FIFO, Unit prices of inventory had risen during the
current year

B- an increase in gearing leading to higher interest costs

C- a reduction in the allowance for uncontrollable receivables

D- A change from the amortization of development costs
being included in the cost of sales to being included in
administrative expenses​

Answer 1

Answer:

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